Economy

WFP reports slight drop in food prices in Afghanistan

File photo.

KABUL — Food prices in Afghanistan declined slightly in the fourth week of May, driven in part by a modest strengthening of the national currency, though costs for many basic goods remain significantly above pre-pandemic levels, according to a new report from the World Food Programme.

The WFP’s Countrywide Weekly Market Report shows a 0.7 percent drop in the national average price of its in-kind food basket compared to the previous week. On a year-on-year basis, the basket is down 1.6 percent. However, it still stands 7 percent higher than prices recorded before the Covid-19 pandemic.

The small decline comes alongside a 1.8 percent appreciation in the Afghani against the U.S. dollar, offering temporary relief in some markets.

Despite recent easing, food prices remain elevated compared to mid-2021 benchmarks, shortly before the Taliban returned to power. The cost of cooking oil is up 18 percent compared to the same period last year, while salt prices have increased by 21 percent. Prices for other major food commodities, however, have declined.

According to the report, vegetable prices also saw week-on-week decreases, attributed to seasonal surges in domestic supply. Tomatoes are down 19 percent compared to May 2024, potatoes 13 percent, and onions 2 percent. As of late May, tomato prices ranged from 18 to 60 afghanis per kilogram across provinces, depending on location and transport costs. Potatoes sold for between 15 and 30 afghanis per kilogram, while onions ranged from 8 to 30 afghanis.

The report says that regional disparities in pricing remain stark, with provinces near international borders benefiting from lower costs due to easier access to imported goods. Larger provincial markets continue to serve as distribution hubs, influencing price differences across the country.

In the labor market, unskilled workers reported an average of 2.4 days of work per week, with daily wages averaging 315 afghanis. While steady compared to earlier in the year, these figures remain below pre-Covid and mid-2021 levels, indicating ongoing underemployment, the report says.

According to the report, diesel prices also held relatively stable. The national average price stood at 56.8 afghanis per liter, virtually unchanged from the previous week and 7 percent lower than a year ago. On the global market, diesel averaged $1.18 per liter, a slight drop from April.

Agricultural input prices—including fertilizers and improved seeds—showed minimal week-on-week movement and modest year-on-year declines, suggesting stable supply conditions ahead of the main harvest season.

While the declines offer modest short-term relief, aid agencies warn that millions of Afghans continue to face food insecurity amid persistent economic uncertainty, limited job opportunities, and stalled international development assistance.